NEW YORK, New York - U.S. stocks rallied on Wednesday after dovish comments from Federal Reserve Chairman Jerome Powell who hinted interest rate cuts are still on the cards, despite last week's strong jobs report.

His remarks also sent the dollar into a tailspin.

At the close on Wednesday, the Dow Jones Industrial Averages were 76.71 points, or 0.29%, higher at 26,860.20.

The Standard and Poor's 500, which earlier traded above the 3,000 level for the first time in history, finished close to that level, for a gain of 13.43 points, or 0.45%, at 2,993.06.

The Nasdaq Composite climbed 60.80 points, or 0.75%, to 8,202.53.

The U.S. dollar corrected on prospects of lower interest rates. The euro jumped to 1.1253 by the New York close.

The British pound gained half-a-cent to 1.2502. The Japanese yen rose to 108.44, while the Swiss franc firmed to 0.9895.

The Canadian dollar was higher at 1.3081. The Australian dollar rose nearly half-a-cent to 0.6958, while the New Zealand dollar did likewise, last trading at 0.6642.

Overseas, the London FTSE 100 fell 0.08%.

The German Dax declined 0.51% while the Paris-based CAC 40 eased 0.08%.

In Asian Markets, the Nikkei 225 in Tokyo was down 31.67 points or 0.15% at 21,533.48.

The Australian All Ords finished 27.60 points or 0.41% higher at 6,777.70.

In China, the Shanghai Composite eased 12.93 points or 0.44% to 2,915.30.